China Development Bank to extend $1.5-bln loan to Kazakhmys

15:30, 13 June 2011

ASTANA. June 13. KAZINFORM The China Development Bank will extend a 1.5 billion dollar loan to Kazakhmys, one of the world's largest mining companies, to develop the Aktogay copper field in eastern Kazakhstan; Kazinform refers to Itar-Tass.

Kazakhmys' chief executive Oleg Novachuk and vice-president of the China Development Bank Gao Jian signed the relevant memorandum in Astana on Monday.

"The sides will sign a credit agreement before the end of the year," according to the mining company's statement.

The company will prepare a feasibility study of the field, which reserves are estimated at 5 million tonnes of copper, this year. The project's capital costs are estimated at around 2 billion dollars.

"New sources of financing will help us to develop Aktogay keeping full control over this field," Novachuk said.

The China Development Bank has already provided financial support for Kazakhmys' other project - the Bozshakol copper field in the Pavlodar region, northern Kazakhstan.

"The two projects' annual aggregate production volume is estimated at 200,000 tonnes of copper concentrate, which will allow to increase Kazakhmys' copper output by over than 60 percent," the company's statement said.

News Foreign Mass Media about Kazakhstan Business